AI Emerges As India’s Biggest Hiring Driver In 2025: Report

Artificial Intelligence (AI) has emerged as the defining hiring force in India in 2025, with 290,256 AI-linked roles posted last year, according to a report by foundit (formerly Monster APAC & ME).

The momentum is set to accelerate, with AI hiring expected to grow 32 per cent year-on-year in 2026, reaching nearly 3.8 lakh positions.

The Indian job market closed 2025 with renewed confidence, registering a 5 per cent month-on-month and 15 per cent year-on-year rise in hiring activity.

This marks a clear transition from cautious recovery to measured expansion across industries, roles, and cities.

“2025 was both a year of expansion and discipline in hiring,” said Tarun Sharma, Chief Product and Technology Officer, foundit.

He noted that AI is no longer experimental but central to workforce planning. In 2026, recruitment will increasingly focus on skills, mid-career professionals, and a balance between Tier 1 and emerging Tier 2 talent hubs.

The IT-Software and Services sector led AI hiring with a 37% share, followed by BFSI (15.8%) and Manufacturing (6%).

BFSI grew 41% YoY, Healthcare 38%, and Retail, Logistics, and Telecom saw gains of 31%, 30%, and 29%.

Generative AI and LLM skills surged nearly 60% YoY, driven by chatbots, copilots, and enterprise GenAI platforms.

Bengaluru retained its lead with a 26 per cent share of AI jobs. Hyderabad recorded the fastest growth among Tier 1 cities, while Jaipur, Indore, and Mysuru led Tier 2 hiring gains.

The broader job market in 2025 saw the strongest growth in mid-level and senior mid-tier roles, reflecting employers’ preference for professionals with proven execution experience rather than top-level leadership.

This trend underscores India’s positioning as a global hub for AI talent and workforce excellence.

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